Let’s not sugar-coat this.
Your bank has cyber insurance. Great. And because of the GLBA passing in 1999, it’s possible you even have an insurance team who source the cyber insurance for you.
But there’s something lurking in those policy pages that’s going to hit you where it hurts most—your bottom line.
The truth? That armoured truck you use to transport cash could fit through some of the holes in your cyber insurance policy.
“But we’ve had our policy for years, we’re covered!”
I hear this all the time – are you really? Show me.
Yes, you’ve checked the box for compliance. You’ve got the certificate framed somewhere (probably not, but for the sake of the article go with it). But when ransomware locks down your core systems during a Monday morning rush? That’s when you’ll discover what your policy actually covers—and what it doesn’t.
Those exclusions buried on page 17? They’re not just fine print—they’re financial time bombs.
Most banks are submitting applications with half-truths about their security posture. Not because they’re dishonest, but because the CISO and CFO aren’t speaking the same language, or they didn’t consut with their MSP/MSSP.
IF YOU READ ONE SECTION, READ THIS ONE
Alright – here’s the nugget for you this week. You know your industry specific banking programs or special lending programs to help certain types of businesses access to capital?
Or those customized portfolio management solutions you offer your private wealth clients because they’re worth millions (yeah yeah, I know NOTHING about that program)?
Okay cool, well why would you treat your own bank any differently? And why are you using a brand name carrier that considers you another number on a spreadsheet (the exact opposite you tell your clients they’ll be treated by you, and why it makes you different).
What’s the point, Jake? ….getting there.
Carriers exist who design a products that are made FOR YOU. I can promise you that a general broker, and even brokers at some of the biggest brokerages in the coutnry, are not providing you with the options that are, quite literally, made for your business.
That in iteslf is costing you money and leaving you with inadequate coverage…here are some additional things to consider.
The 5 Critical Mistakes Banks Are Making Right Now
- Misunderstanding Policy Exclusions – When was the last time you actually read your policy’s exclusion section?
- Inaccurate Insurance Applications – Your IT team is implementing one security protocol while your application claims another.
- Choosing Inadequate Coverage – Generic policies might work for the coffee shop down the street (actually no, nobody is safe), but not for an institution handling millions in transactions daily (true).
- Neglecting Proactive Security – Insurance carriers aren’t dumb. They know which banks are serious about security and which ones are just going through the motions. And they price accordingly.
- Failing to Update as Risks Evolve – That policy you set up three years ago? It’s protecting you against threats that aren’t even relevant anymore.
The worst part? The threats are evolving daily, but your policy is stuck in 2019. Those new attack vectors targeting regional banks? They weren’t even on the radar when you signed your current policy.
The real cost isn’t just the increasing premiums—it’s the false sense of security keeping you from addressing the actual gaps in your coverage.
And for heaven’s sake, read your exclusions page. Today.
Stop treating your cyber insurance like a compliance checkbox and start treating it like the financial instrument it is—one that needs to actually protect your institution when things go sideways.
Okay, that’s all for this week…or two weeks…it’s hard to write every week so I apologize if I miss one here and there.
If you made it this far, I appreciate you. Reach out to chat anytime.
P.S. And thank you for always reading my newsletters (rants)